Aalogistics Co. has just signed a contract to deliver products to three locations, and they are trying to decide where to put their new warehouse. The three delivery locations are Chicago, Kansas City, and Memphis. The two potential sites for the warehouse are Peoria and St. Louis. The x, y coordinates for the delivery locations and warehouses are as follows:
The total quantity to be delivered to each destination is: 400 to Chicago, 150 to Kansas City, and 100 to Memphis.
(a) Calculate the total load-distance value from each potential warehouse location.
(b) Where should the new warehouse be located?
Definitions:
Net Carrying Value
The current book value of an asset or company after subtracting total liabilities from total assets.
Bonus Compensation Plan
A reward system for employees based on performance, often seen as a way to incentivize exceeding targets or goals.
Income Taxes
Taxes imposed by a government on the income generated by individuals or entities, which can vary based on the income level and type.
Income Before Tax
The total earnings of a company before taxes have been deducted.
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